CHARLOTTE, NC—Magnolia Station Apartments has a new owner. The Praedium Group, a New York-based investment firm, snapped up the multifamily asset in partnership with Charlotte-based Grubb Properties for $36.5 million. Built in 2008, the 456-unit multifamily asset will be renamed Sterling Steele Creek Apartments.

“The asset was acquired at a discount to replacement cost in a market that had seen strong rent and occupancy growth over the last six to nine months with no new supply on the horizon,” Asim Hamid, vice president of Praedium, tells GlobeSt.com. “We believe that we can take advantage of these strong fundamentals during our hold. In addition, we also intend to make minor improvements to the asset to make it more competitive with other class A properties in the market.”

Specifically, Hamid says the joint venture will invest $400,000 during the next six months. The majority of the capital will go to improve common areas and amenities including the clubhouse, swimming pools, and fitness center. The new owner also plans to spruce up the landscaping, add a dog park and rebrand the asset.

The multifamily complex is located near the intersection of South Tryon Street and Steele Creek Road next to the newly-developed Super Target-, Harris-Teeter-, and Home Depot-anchored shopping centers. Magnolia Station Apartments is seven miles from Charlotte Douglas International Airport and close to Ayrsley Town Center, a five-million-square-foot, mixed-use retail, business and neighborhood district.

“It is very difficult to acquire a well located class A multifamily asset in Charlotte at a price that makes sense for us,” Hamid says. “This asset was placed under contract last fall when there was uncertainty in the market following the US debt downgrade and the situation in Europe. A lot of the major players had taken a brief break from making new investments, which resulted in favorable pricing for us.”